Personal loans: To borrow or not to borrow?

Here you will find the right answers

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  • BenutzernameMoneyland User Questions
  • Status Member
  • Registriert seit1/27/17
  • Beiträge2142

I am wondering whether or not I should get a loan. I've always been taugh to avoid borrowing money. But realistically, what are the actual pros and cons of getting loans? A list of these would be very helpful.

Thanks and best regards

  • BenutzernameMoneyguru von
  • OrtSchweiz
  • Status Expert
  • Registriert seit8/4/15
  • Beiträge4016


Here is a list of the key advantages and disadvantages of loans.


Loans provide money which can be used for many different purposes and enables you to make purchases or investments which you would not be able to finance by other means.

Loans provide fast access to money (a 14-day waiting period applies in Switzerland).


Loans are not free. The cost of a personal loan can be as high as 10% of outstanding debt every year. You will pay an amount equal to as much as 12% of your debt when you get a loan using a credit card. You can find out how much money the interest rates of loans convert into by using the loan calculator.


A loan can provide a useful tool for financing a well-planned project or getting you through a financial tight spot. However, if you are not completely confident that you can meet the required debt repayments, you would do best to avoid loans. Getting advice from a debt counselor can help you understand whether or not you can actually afford a loan.

A good first step is to compare all loan offers. There are major differences between loans and interest rates offered by different lenders.

Best regards from Moneyguru

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